In a property management agreement, who is the broker's client?

In a property management agreement, the broker's client is the owner of the property. This relationship is established because the property owner is the one who engages the broker or property management company to manage their property on their behalf. The owner retains the broker's services to ensure their property is maintained, rented, and managed according to the owner's preferences and overarching goals.

The direct fiduciary duty and responsibility of the broker lie with the owner, as the owner is the party that compensates the broker for their services and authority. This means that the broker must act in the best interest of the owner, making decisions and taking actions that align with the owner’s objectives regarding the property.

Other entities, such as tenants or property management companies, while they may interact with the broker, do not establish the same level of client relationship. Tenants are considered customers or clients of the property owner and, thus, of the broker in that capacity, but they are not the direct clients of the broker. Similarly, the property management company may be an intermediary, but it does not change the fact that the property owner is the primary client in this agreement. Local government does not play a role in the client-broker relationship established in a property management context.